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In a clear indication that it is
in for the long haul in the container liner
trade, MISC Bhd has extended its participation
in the Grand Alliance for further 10 years
following a decade of association with the
alliance members.
The Grand Alliance (GA), founded in 1998, is the
leading integrated consortium in the global
container liner shipping.
MISC’s participation in the alliance, comprising
other members namely German-based Hapag-Lloyd,
Nippon Yusen Kaisha and Hong Kong-based Orient
Overseas Container Line will extend the
space/vessel & revenue sharing arrangement to
2017.
MISC was represented by its Vice-President of
Liner Business, Niels Kim Balling at the signing
ceremony.
One of the key aspects for GA, which calls at
Northport in Port Klang, future cooperation is
to offer a higher frequency of sailings in fast
growing markets to meet increasing the supply
chain and shorter product-cycle requirements of
its customers.
Depending on customer demands, Grand Alliance
members will consider expanding the scope of the
Grand Alliance.
Today, the Grand Alliance members collectively
deploy a total of about 140 vessels each with a
capacity of between 2,700 and 9,000 TEU offering
20 services, mainly on major east- west routes.
“We have enjoyed a very close partnership with
GA members which has able to respond to market
changes rapidly and together realise cost
savings for customers. Our customers benefit
from our modern tonnage, excellent port coverage
and attractive transit times, said the Chairman
of MISC, Tan Sri Datuk Sri Mohd Hassan bin
Marican.
“There was thus no doubt about in our desire to
continue our successful cooperation with GA. We
are happy with them and we are not looking for
other alliances,” he added.
As member of the Grand Alliance, MISC injected
three 5,334 TEU ships to improve overall scale
efficiency under a vessel swap arrangement for
its two 7,943 TEU new buildings, the Bunga
Seroja Satu and Dua which joined the long-haul
trade lanes during the year.
However the Hassan said that, the liner business
was expected to continue facing a difficult year
in light of surplus tonnage in the market as
well as softening of freight rates and
escalating operating costs.
“We will continue to focus on improving its cost
efficiencies and strengthening its yield
management activities in the liner business,” he
said.
Speaking at the 38th Annual General Meeting in
Kuala Lumpur, he said MISC's strategy was to
focus on long haul routes by strengthening its
position in the East-West trade with a focus on
the European markets.
He said MISC would strive to maintain a position
in Grand Alliance where it is a core partner.
Hassan also said MISC would also continue to
establish itself as a leading player in the
Halal supply chain solution.
The new service, MISC Liner Halal Express was
successfully launched and accepted favorably by
the market with the aim to tap the growing
demand for halal products in Middle East and
Indian subcontinent.
We will continue to look into the option of
expanding the service further on right time said
Hassan.
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